Conceptualization of these models are important. Try to formalize informal descriptions into building blocks and their overall business activities. While many different conceptualizations exist, Osterwalder proposed a synthesis of different conceptualizations into a single reference model based on the similarities of a large range of models, and constitutes a business model design template which allows enterprises to describe their business model:
The nine building blocks and their relationships, as described by Osterwalder (2004), can be pictorially represented as shown on the left (click on it to enlarge it
- Core capabilities: The capabilities and competencies necessary to execute a company's business model.
- Partner network: The business alliances which complement other aspects of the business model.
- Value configuration: The rationale which makes a business mutually beneficial for a business and its customers.